BHK property sales moving slowly

Offer on Moyer Clinic rescinded

February 5, 2013

HOUGHTON - The process to sell some of the buildings owned by BHK Child Development is continuing, and the organizations' board of directors Monday heard about the status during its regular meeting.

Bill Polkinghorne, BHK associate director, told board members the sale of the Moyer building on U.S. 41 on the border between Houghton and Baraga counties is no longer certain.

Polkinghorn said the person who placed the high bid for the building called him just 55 minutes before the board meeting started to rescind the offer or to have further discussions on the price.

Article Photos

Kurt Hauglie/Daily Mining GazetteThe BHK Child Development Board of Directors during its regular meeting Monday discusses the status of the attempt to sell BHK-owned buildings.

If the board decides not to have further discussions with the high bidder, Polkinghorne said there is another option.

"As such, it would go to the second (highest) bidder," he said.

Polkinghorne recommended to the board members the matter be tabled until the next board meeting, and that was unanimously approved.

The attempt to sell the Wellness Center building in L'Anse isn't going well, Polkinghorne said.

"We haven't had any bites on that at all," he said.

The building is still being advertised for sale, however, Polkinghorne said.

There is some interest in the Keweenaw Kids building in Laurium, also, Polkinghorne said.

On another building topic, Polkinghorne said repairs need to be made at the BHK L'Anse facility, which board members unanimously approved.

Pat Rozich, BHK executive director, told the board members he's now requiring six monthly reports about the work of the organization.

"I request monthly reports from each director we have now," he said.

Rozich said he's also created an organizational chart of BHK.

"Employees know who they're supposed to report to, not the maze we had before," he said.

In response to a question from board member Colleen Vallad-Hix about the status of the BHK $1.2 million deficit, Chip Law, BHK finance director, said he can't give a definitive answer about the deficit until after the organization's audit is completed. The audit should begin later this week.

Law did say the organization is no longer losing money, and cash flow is in a positive direction.

"This is a long process to build reserves back up," he said. "I believe we've seen the worst of it. I know we're going in the right direction financially."

In other business, board members:

approved the bid of $9,960 per year for custodial services from D & L Janitorial Service.

approved keeping Polkinghorne as associate director for two or three more months. Polkinghorne said he would absolutely stay no more than three months.

heard from Polkinghorne he sold a 40-foot-long trailer owned by BHK for $1,000.